CHCG for $5.60!

Down 0.15%, led by my basic resource stocks (NXG, FTO & FDG). CHCG didn't help matters either, down another 6%. They had an odd news release today (China 3C Group Enters Into Agreement to Sell Approximately $11.74 Million of Common Stock ).

Not that $12m is that much, but what is weird was they sold it at a fire sale price of $5.60 per share (they closed today at $7.05). Here is what the CEO said about the sale:

"We believe this new sale of China 3C's equity will enhance shareholder value by providing the company with a cash infusion that will enable it to pursue certain business opportunities in China that are currently being considered by management. Although the sale price of the shares was at a discount to the current trading price of the company's common stock, we believe that management's ability to act swiftly to negotiate this transaction without the assistance and associated fees of a placement agent demonstrates the company's desire to maximize the benefits of the capital investment in light of a discounted sale price."

It looks to me that they needed some cash quickly. I hope the opportunity does enhance shareholder value. I will continue to watch the stock closely, another drop tomorrow and I may be a buyer.

LRCX went up sharply today, over 10%. It looks like Novellus had some good news, but I am not sure why LRCX out-performed peer semi equip companies... not that I am complaining.

I did buy some USHS today. It isn't part of my MFI, nor am I calling it a sidecar. But it is a fallout from my reading the Dhandho investor and my desire to make some bigger "bets" when I feel the odds are in my favor. I went back and reviewed times I had made out-sized purchases in the past on stocks I followed closely and saw I had done well.

Quickie Study - I took a look at the 30 stocks I have sold since beginning MFI. If I had held them at $10,000 value, I would have had about a 40% annualized IRR. If I pull out the two stocks I sold early because I felt they no longer had MFI qualities (PTSC & AVCI) the IRR would increase to 50%. This illustrates that the 1 year rule is extremely arbitrary and there is potential upside beyond the year.

OT - terrible plane crash in Brazil today. For all of you who travel, make sure you hug your family before you leave.